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SpaceX shares (SPCX) closed at $134.72 on Friday, falling just below their $135 listing price from June. Binance founder Changpeng Zhao (CZ) responded to the price action on Saturday, stating that the company will be one of the best stocks to hold for years.
The slight dip leaves investors who purchased at the initial listing price marginally underwater. Despite the current price level, Wall Street analysts maintain a bullish outlook, projecting 86% upside potential from Friday’s close. Conversely, options market participants are pricing in significant volatility, paying for a 14% swing in either direction by mid-December.
Binance Stake and CZ Response
Binance holds a stake in SpaceX valued at more than $1 billion. This position originated as a $500 million bet on Elon Musk’s 2022 acquisition of Twitter. On Friday, CZ referenced these shares while discussing the financial shortfall resulting from a recent hack. Some market participants interpreted the mention as a potential signal to sell. CZ explicitly rejected that interpretation.
“I never said “selling SPCX shares”… I don’t make threats… And I think it will be one of the best stocks to hold for a long time to come,” CZ said. Binance co-CEO Yi He previously stated that the company’s revenue for the current year is sufficient to cover the losses associated with the $6 billion heist.
December Unlock and Options Pricing
Lockup agreements prevent early investors from selling their shares for a specified period following a company’s listing. According to the schedule published on Nasdaq, SpaceX’s final batch of locked-up shares becomes sellable on December 8. This date is significant for market dynamics because it occurs 10 days before the expiration of specific options contracts.
Options contracts expiring on December 18 currently price a move of approximately $19, representing a 14% change. This pricing implies an expected price range between $117 and $155. Historical data from the previous major unlock suggests a different market reaction. When over 911 million insider shares were unlocked on August 6, SPCX stock rose more than 6% toward $115.
Analyst Targets and Valuation
Among the 35 analysts tracked by TipRanks, 29 rate SpaceX stock a Buy. Their average price target stands at $250.34, which is approximately 86% higher than Friday’s closing price. Even the most conservative target among the tracked analysts, Piper Sandler’s $140, remains above the current market price.
The primary bearish argument centers on valuation metrics. SpaceX currently trades at approximately 518 times its annual profit, according to MarketBeat data. This high multiple persists despite a significant increase in earnings, with third-quarter revenue jumping 161% to $14.57 billion. The convergence of the December 8 share unlock and the December 18 options expiry creates a specific window for potential price volatility.
Frequently Asked Questions
Did Changpeng Zhao say Binance is selling SpaceX shares?
No, CZ stated on Saturday that he never said Binance was selling SPCX shares and that he does not make threats. He described SpaceX as one of the best stocks to hold for a long time.
When do SpaceX’s final locked-up shares become sellable?
SpaceX’s final batch of locked-up shares becomes sellable on December 8, according to the Nasdaq schedule. This date is 10 days before the December 18 options expiry.
